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Which accounting ratio gives the perfect financial position of business. Pls write the ratio formula?

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Question ajoutée par Fazal Qayyum , PURCHASING OFFICER , Ali & Sons Contracting Co. Sole Proprietorship LLC
Date de publication: 2014/08/15
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Liquidity Ratios, Solvency Ratios,  Profitability Ratios,   Effieciency Ratios.....these determine the Perfect Financial Position of a business.

1.Crrent Ratio: Current Assets / Current Liabilities  (main Liquidity Ratio) 

-- explains  the company's short term liquidity position. 

2. Debt-Equity Ratio   (main Solvency Ratio)

    = Total of Companies External Debts/  Total Equity and Capital Reservess

--Explain the capability of company to perform its long term obligations 

3. P/V Ratio:  Gross Profit/ Net Sales ( main Profitability Ratio)

--Explains how well the company is Erning profits surpassing its BEP

4. Inventory Ratio: Cost of Goods Sold / Average Inventory  (Main Efficiency Ratio)

--Explains--how well the Current Assets are utilised with lesser holding period

(All Ratios can be expressed by way of percentage)

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

Assets + expenses + Partners withdrawals = liabilities + equity + revenue

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

I think all the important financial ratios to determine the financial position and financial ratios are divided into four main sections, namely: 

1. liquidity ratios 

2. profitability ratios 

3. efficiency ratios 

4. leverage ratios

Menerva Melad
par Menerva Melad , Account Executive, Key Accounts , Graphic Home Company

.Crrent Ratio: Current Assets / Current Liabilities  (main Liquidity Ratio)  -- explains  the company's short term liquidity position

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